Market Report

Panhandle
Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Rolling Hills Apartments, a 152-unit multifamily community located in Tallahassee, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $6,440,000.

Francesco "Frank" Carriera and Michael Regan, vice presidents investments in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the Georgia-based seller, a private investor. The listing agents also procured the buyer of the property a private investor from Tallahassee.

Rolling Hills Apartments was built in 1972 and is located at 280 John Knox Road in Tallahassee. The property consists of seven, two-story buildings comprised of one-, two- and three-bedroom units. In 2004, 18 three-bedroom/three-and-a-half bathroom townhome units were added. All townhome units have back patios with views of a natural spring-fed lake. Property amenities include on-site laundry facilities, washer and dryer appliances in all townhome units, washer and dryer connections in select units, a fitness center, barbeque and picnic area, a clubhouse and a pool.

"We generated nine offers from buyers located in the Southeast, Northeast and Central U.S. regions," says Carriera. "The incredible amount of interest we received in the offering, allowed for multiple offers over the seller’s expectations, with several buyers offering non-refundable deposits immediately upon execution of the purchase contract," adds Carriera. "The Tallahassee market allows investors from all over Florida to take advantage of buying investments at slightly higher yields than most other markets in Florida. Additionally, investors are attracted to Tallahassee due to the stable government and higher education employment opportunities," concludes Carriera.

 

The property, called The Sounds at Navarre Beach Apartments, is located on the southeast corner of U.S. Highway 98 and Joybrook Road. Navarre is a city located right on the Gulf of Mexico in the panhandle section of Florida, about 10 miles east of Pensacola.

 

The project will consist of five four-story apartment buildings along with a welcome center and pool house on 16 acres. The market rate project will provide sweeping water views to about two thirds of the units.

 

The sponsor, Talos Holdings, LLC, is a well-seasoned multifamily developer that has constructed several projects by using the FHA 221(d)(4) loan program. The new FHA loan was used as a non-recourse finance solution for both the construction and permanent financing of the project. This FHA Section 221(d)(4)  debt will have a 20-month construction period loan plus a fully-amortizing 40-year loan. The new interest rate is in the high 4 percent range.

 

Commenting on this transaction, Graber noted, "This is an exciting project for the Navarre market. It hasn’t had any new multifamily construction in over ten years. This new development will bring jobs to the local economy and offer excellent rental housing in tight rental market. The sponsor is a long-time client with an excellent track record. We think the project has all of the signs of a truly successful development."

Bay Area
Beech Street Capital announced that it provided $92.5 million in Freddie Mac CME loans to refinance a portfolio of five apartment complexes totaling 1,254 units in Florida, Alabama and Wisconsin. The apartments were all developed by the borrower, Continental Properties Company Inc., a national real estate development company headquartered in Menomonee Falls, Wisconsin. The properties were developed between 1991 and 2006. The transaction was originated by Assistant Vice President Adam Bieber.

 

Edward Madell, chief financial officer at Continental, praised Beech Street’s timeliness and execution. "Beech Street Capital delivered exactly what they promised on our portfolio refinance," he said. "Fast response and maximum value. The team at Beech Street was engaged and hands on all the way through the process." 

 

Upon identifying the key objectives of the borrower’s financing goals, Beech Street leveraged its deep agency experience in order to craft a tailor-made financing structure for the portfolio. "This transaction, our first with Continental, gave us an opportunity to demonstrate that we can handle a large, geographically diverse portfolio and still provide the quick and effective results our clients require," Bieber says. "We are grateful for the synergy between Beech Street, Continental and Freddie Mac and we look forward to continuing to provide our clients with the best service and execution in the industry."

  

Four of the fixed-rate loans have a seven-year term, 6.75 years of defeasance, and 30-years amortization payable on an actual/360 basis. The fifth has the same terms as well as a one-year interest-only period.

 

Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of The Palms, a 32-unit apartment property located in St. Petersburg, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $1,150,000.

Casey Babb, a CCIM and associate vice president investments, and Luis Baez, senior associate in Marcus & Millichap’s Tampa office, represented the Tampa-based seller, a private investor. Babb and Baez also represented the buyer of the property, a private investment group based in Montreal, Canada.

The Palms is located at 2800 Fourth Street South in St. Petersburg. This is a Class "C", fully stabilized, garden-style apartment community located in the Harbordale submarket. This 1960s concrete block constructed building consists of 32 units housed within a two-story building with a newly installed flat, built-up roof. The property was recently renovated in 2012 with exterior painting, updated landscaping and interior improvements. Units are a mix of 24 one- and two-bedroom units. Community amenities include a laundry facility, covered parking and on-site maintenance.

 

"The marketplace continues to be favorable for both sellers and buyers," says Baez. "The seller disposed of the property at 65 percent above purchase price in 2012 and the buyer capitalized on still historically low interest rates by acquiring a recently rehabbed, fully occupied asset with an immediate high return on investment."

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Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Oak Ridge, a 137-unit multifamily community located in Largo, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $7,725,000.

Nicholas Meoli and Michael Donaldson, senior associates in the Tampa office of Marcus & Millichap, had the exclusive listing to market the property on behalf of the local seller, a limited liability company. The buyer, a private investor based in New Jersey, was also secured by Meoli and Donaldson.

Oak Ridge Apartments was built in 1974 and consists of 30 two-story buildings located at 13333 Ridge Road in Largo. The buildings are comprised of one-, two- and three-bedroom units situated on a spacious 10.85-acre split lot. Common area amenities include two swimming pools with clubhouses, two on-site laundry facilities, a playground and ample parking. Unit amenities include central air-conditioning, private balconies and patios, washer and dryer connections and full kitchens.

"With a strong location that fronts Ulmerton Road, significant upside through strategic renovations, and large, two-story units, Oak Ridge Apartments commanded 14 offers in less than four weeks with our national marketing campaign," says Meoli. "We are continuing to see investors aggressively target the Tampa Bay area and foresee high occupancies with continued rent growth throughout 2014," adds Donaldson.    

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Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Fountain Court Apartments, a 62-unit multifamily community located in St. Petersburg, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $3,090,000.

Francesco "Frank" Carriera and Michael Regan, vice presidents investments, and Joshua Teplitzky, investment specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the local seller, a private investor. The listing agents also procured the buyer of the property, a limited liability company based in Safety Harbor.

Fountain Court Apartments was built in 1968 and is located at 600 40th Street North in St. Petersburg. There are two two-story buildings and two three-story buildings, consisting of one-, two- and three-bedroom floor plans. The property has undergone major renovations within the last two years which includes, new exterior paint, new roofs, updates to the pool, elevators, courtyard and the interiors of select units.

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Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Bay Villa Place, a four-unit garden apartment community located in Tampa, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $435,000.

Casey Babb, a CCIM and senior multifamily specialist, and Ari Ravi, associate in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the seller, a private investor based in Maryland. Babb and Ravi also procured and represented the buyer, a private investor from Tampa.

Bay Villa Place was built in 1926 and is located at 1403 South Bay Villa Place in Tampa.

This is a newly renovated, Class "B" historic garden apartment community located in South Tampa’s Hyde Park/SoHo submarket. Originally built in the 1920s, the property consists of four two-bedroom/one-bath apartment homes with hardwood floors. Recent updates to the building include new exterior paint, new window framing, hardscaped flower beds and an updated kitchen.

"Hyde Park in South Tampa is a very desirable submarket for rental apartments and we were able to generate five offers in less than a week and went under contract with multiple backups," says Ravi. "The buyer paid all cash and the transaction closed within 30 days."

Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Kenwood Apartments, a 18-unit multifamily complex located in St. Petersburg, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $497,500.

Michael Donaldson and Nicholas Meoli, senior associates, and Jason Hague, associate, all in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the local seller, a limited liability company. The listing agents also procured the buyer of the property, a limited liability company, based in Tampa.

Kenwood Apartments was built in 1964 and is located at 3433 Third Avenue South in St. Petersburg. The property consists of two two-story buildings situated on .34 acres of land. The buildings are comprised of one- and two-bedroom units. One half of the units are equipped with central heat and air-conditioning, while the other half has individual wall units. Amenities include an on-site laundry facility. The property was 50 percent occupied at the time of close and the buyer received seller financing.

"By highlighting the value add aspect of this transaction, we were able to generate significant interest and five offers over the marketing period, ultimately allowing us to close less than thirty days from the executed contract date," says Hague in a statement.

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Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Judy Ann Apartments, a 20-unit apartment property located in Pinellas Park, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $1,100,000.

Michael Donaldson and Nicholas Meoli, senior associates in the Tampa office of Marcus & Millichap, had the exclusive listing to market the property on behalf of the local seller, a limited liability company. The buyer, a private investor from Bradenton, was secured and represented by Donaldson, Meoli and Earle Hyman, a senior vice president investments in Marcus & Millichap’s Encino office. 

Judy Ann Apartments is situated on approximately 2.51 acres of land and is located at 5501 70th Avenue North in Pinellas Park. The property was built in 1983 and consists of seven one-story buildings comprised of 20 two-bedroom/one-bathroom units. Common area amenities include an onsite laundry facility and ample on-site parking. 

"The apartment market is continuing to grow stronger and national investors are targeting the Tampa Bay area," says Meoli. "The investment community is foreseeing positive rental growth in 2014 which is driving demand and compressing cap rates for infill locations throughout the west coast of Florida," adds Donaldson.  

Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of a 24-unit apartment community located in Tampa, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $900,000.

Michael Donaldson and Nicholas Meoli, senior associates in the Tampa office of Marcus & Millichap, had the exclusive listing to market the property on behalf of the seller, a limited liability company in Land O’ Lakes. The local buyer, a limited liability company, was secured by Luis Baez, an investment specialist also in the firm’s Tampa office.

The 24-unit, garden-style apartment community is located at 4005 East Humphrey Street in Tampa. Built in 1972, the complex is situated on approximately a 0.60 acre lot which consists of two two-story buildings. Amenities of the property include private patios/porches and central air-conditioning in each unit.

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Marcus & Millichap Real Estate Investment Services, the nation’s largest real estate investment services firm, has announced the sale of Fountain Court Apartments, a 62-unit multifamily community located in St. Petersburg, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $3,090,000.

Francesco "Frank" Carriera and Michael Regan, vice presidents investments, and Joshua Teplitzky, investment specialist in Marcus & Millichap’s Tampa office, had the exclusive listing to market the property on behalf of the local seller, a private investor. The listing agents also procured the buyer of the property, a limited liability company based in Safety Harbor.

Fountain Court Apartments was built in 1968 and is located at 600 40th Street North in St. Petersburg. There are two two-story buildings and two three-story buildings consisting of one-, two- and three-bedroom floor plans. The property has undergone major renovations within the last two years which includes new exterior paint, new roofs, updates to the pool, elevators, courtyard and the interiors of select units.

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Beech Street Capital announced that it provided a $7.4 million Fannie Mae conventional loan for the acquisition of Ashton Oaks Apartments, a 168-unit, garden-style apartment complex in New Port Richey, in the Tampa MSA. Chad Thomas Hagwood, executive vice president for originations in Beech Street’s Birmingham office, originated the transaction. Brandon Pate of the Birmingham deal team managed the loan process. This is the third transaction that the borrower, with more than 30 years of commercial real estate experience in Florida markets, has completed with Beech Street. "The transaction underscores Beech Street’s deep knowledge of the evolving Florida market," Hagwood says. "This is the second community we’ve financed for the borrower in a 20-mile radius."

 

Ashton Oaks was built in 2005 and is considered in excellent condition. It was originally constructed as an age-restricted (55 ) senior community with elevators in each building. It was converted to a market apartment community in 2007. All of the units have a carpeted living area and vinyl/ceramic tile kitchen floors, wood cabinetry, balconies/patios, ranges, dishwasher, washer/dryer and refrigerators.  

 

The fixed-rate loan has 10-year term, 9.5 years of defeasance, and a one-year interest-only period, followed by 30-years amortization payable on an actual/360 basis.

Southeast Florida

Marcus & Millichap Real Estate Investment Services, a real estate investment services firm, has announced the sale of Shore View, a 155-unit apartment community located in Satellite Beach, according to Richard D. Matricaria, regional manager of the firm’s Tampa office. The asset sold for $7,500,000.

Michael Donaldson and Nicholas Meoli, senior associates in the Tampa office of Marcus & Millichap, had the exclusive listing to market the property on behalf of the seller, based in Maryland. The local buyer, a limited liability company, was also secured by Donaldson and Meoli.

Shore View is located at 50 Berkeley Street, across the street from the Atlantic Ocean in Satellite Beach. This 155-unit apartment complex is situated on approximately 8.5 acres of land and consists of five two-story buildings built in 1964. Each unit is cable-ready, equipped with ceiling fans, oversized utility rooms, private patios or balconies and central heat and air-conditioning. Common area amenities of the property include laundry facilities in each building, a state-of-the-art fitness center, several barbeque/picnic areas equipped with grills and tables, a junior Olympic-size swimming pool, basketball court and a 1,000-square foot clubhouse that is available for rent by tenants.

"Combined with the property’s unique location across from the Atlantic Ocean and the high occupancy level sustained over the last few months, Shore View Apartments was a ‘one-of-a-kind’ investment opportunity as evidenced by the 18 offers we procured from buyers all over the world," says Donaldson. "If you look at Florida’s inventory of beachside communities, they are typically smaller complexes with fewer than 100 units and have already been converted to condominiums, making Shore View a rare find."

"Overall, Shore View is an exceptional piece of real estate and a well sought-after investment with multiple exit strategies," adds Meoli.